1. Daily Technical Outlook
16th December 2011
Indices * Close % Chg.
Mirroring the weak market cues, the domestic markets
BSE SENSEX 15836.47 -0.28 witnessed a negative opening. Sustained selling pressure
S&P CNX NIFTY 4746.35 -0.35 was witnessed as markets drifted lower. The markets
NIFTY DEC. FUT. 4757.40 -0.14 recovered in the noon session on back of short covering and
India VIX 28.81 0.06 selective buying support. The markets managed to hold on to
the gains on back of selective buying support and short
S&P CNX NIFTY Technical Levels
covering ahead of tomorrow’s RBI meeting. The markets
Level 1 Level 2 Level 3
ended the day with modest losses but closed near the highs
Support 4747 4563 4481 for the day. The top losers for the day were Sterlite, Ranbaxy,
Resistance 4987 5037 5161 Bharti Airtel, Sesa Goa, BHEL, Cairn, SBI, Tata Motors, Rel.
Power and L&T.
Moving Averages S&P CNX NIFTY
50 Day SMA 5002.86 Technically, the market breadth remained negative
◄Negative
100 Day SMA 5072.66 amidst higher volumes, which is a negative sign for the
200 Day SMA 5320.89 ◄Negative markets. The global market set of cues are mix. The
domestic markets are likely to witness a flat opening. The
Volume (Lacs Shares) * Nifty once again successfully took support at the 4747
15/12/11 14/12/11 % Chg. support level but has marginally closed below it. The
BSE 1844 1937 -4.80 Stochastic remains placed above its average but still
NSE 6041 5220 15.71 placed in the over sold zone. Moreso, the MACD is
Total 7885 7157 10.16 placed above its average and is on verge of moving in
the positive territory. Both these conditions are the only
Turnover ( ` Crores) * two silver linings for the markets, which would lead to
15/12/11 14/12/11 % Chg. intermediate bouts of short covering and buying support.
BSE 2041.89 1929.75 5.81 However, prevailing technical negatives continue to hold
NSE 10931.12 9775.43 11.82 good and would cap any upside gains. The KST and RSI
NSE F&O 138306.95 130748.08 5.78
are placed below their respective averages. Moreso the
KST and MACD are placed in the negative and warn of
Total 151279.96 142453.26 6.20
impending selling pressure. The Nifty continues to trade
F&O Contracts Traded (NSE) * below its 50-day SMA and 200-day SMA. Further the 50-
15/12/11 14/12/11 % Chg.
day SMA remains placed below the 100-day SMA. All
these conditions would lead to further selling pressure.
Index Fut. 716530 749419 -4.39
The ADX and +DI line are moving lower, while the -DI line
Stock Fut. 541021 505218 7.09
is moving higher and is currently placed at 34.78
Index Opt. 4424126 4086919 8.25 indicating sellers have an upper hand. The Nifty has also
Stock Opt. 172043 148969 15.49 formed a head and shoulder pattern, which does not
Total 5853720 5490525 6.56 augur well for the markets. The markets remain poised
crucially. The 4747 continues to remain a crucial level for
Market Breadth (NSE) *
Nifty. If Nifty continues to close below this level this level
Advances 385 then it could test the 4563 level in the near future. In the
Declines 1094 meanwhile the markets would take cues from the global
Same 56 markets, crude prices, and RBI’s meet. The support levels
Total 1535 for Nifty are placed at 4747, 4563 and 4481. The Nifty faces
A/D Ratio 0.35 : 1 resistance at the 4987, 5037, 5161, 5230 and 5360 levels.
NOTE - *- Source – BSE & NSE
Sanjay Bhatia (AVP – Technicals), Email Id sanjay@keynotecapitals.net Yahoo Chat Id: keytechnicals@yahoo.in
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2. Short Term Trading Ideas Based On Technical Analysis (5 - 7 Days)
Stop
Initiation Stop Loss Target
Stock Close Action Price Loss * (%) Target (%) Remarks
AB Nuvo 836.00 Sell Below 833.00 848.00 1.80 800.00 3.96
Escorts 68.60 Sell Below 68.00 70.25 3.31 63.00 7.35
Havells 393.50 Sell Below 397.00 405.55 2.15 378.00 4.79
Sesa Goa 163.90 Sell Below 161.00 167.30 3.91 147.00 8.70
* Stop Losses are to be considered strictly on Closing basis.
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 15836 15780 15964 16092 16404 15652 15468 15157
S&P CNX NIFTY 4746 4730 4785 4824 4919 4691 4635 4540
NIFTY DEC. FUT. 4757 4738 4804 4850 4963 4691 4625 4512
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